For a Crave Cookies franchise in Illinois, is a franchise agreement provision designating jurisdiction or venue outside of Illinois valid?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Illinois Franchise Disclosure Act of 1987, as amended (the "Act"), this Disclosure Document is amended as follows:
Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Act provides that any provision in a franchise agreement that designates jurisdiction of venue outside the State of Illinois is void. However, a franchise agreement may provide for mediation outside of Illinois.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, Section 4 of the Illinois Franchise Disclosure Act states that any provision in a franchise agreement that designates jurisdiction or venue outside the State of Illinois is void. This means that if a Crave Cookies franchise agreement contains a clause requiring disputes to be resolved in a state other than Illinois, that clause is not enforceable under Illinois law.
This protection ensures that Illinois franchisees are not forced to travel to another state to resolve legal disputes with Crave Cookies, which could be a significant financial and logistical burden. Franchisees can pursue legal action against the franchisor in a more convenient and cost-effective manner.
However, the FDD also notes an exception: a Crave Cookies franchise agreement may provide for mediation outside of Illinois. This means that while a franchisee cannot be forced to litigate a case in another state, they can agree to participate in mediation in a different location. Mediation is a form of alternative dispute resolution where a neutral third party helps the parties reach a settlement.
In summary, while Crave Cookies can include a clause requiring out-of-state mediation, any clause mandating jurisdiction or venue outside of Illinois for legal disputes is void and unenforceable, according to Illinois law.